[Edaily Reporter Park Jung-Soo ] On the 30th, SamsungSecurities maintained its “Buy” rating on SK(034730), citing it as the stock set to benefit the most from SK Group’s mega projects in semiconductors and artificial intelligence (AI) data centers, and raised its target price by 41.8% from 670,000 won to 950,000 won. The previous day’s closing price was 785,000 won.
Park Se-woong, an analyst at SamsungSecurities, stated, “With SK Group announcing a total investment of 2,100 trillion won in the semiconductor and AI data center sectors, SK is expected to reap proactive and long-term benefits through its existing business portfolio,” adding, “We designate it as our top pick in the holding company sector.”
Benefits from expanded semiconductor investment were the primary expectation. Analyst Park explained, “Through its unlisted subsidiaries, SK is providing integrated infrastructure solutions—including engineering, procurement, and construction (EPC) as well as power and water supply—during the construction of semiconductor fabs and clusters.” He added, “Once investments in new fabs in Yongin, Cheongju, and SuNAM Co., Ltd. gain momentum, most of the initial investment will be in the construction and infrastructure sectors, making it possible for SK to secure large-scale orders.”
In fact, the subsidiary has secured 6 trillion won in orders from the 31 trillion won Yongin fab and cluster investment project currently underway from 2024 to 2026. SamsungSecurities projected that large-scale orders and profits could be realized in a similar manner through this mega-project as well.
The AI data center business was also cited as a new growth driver. SK can participate through SK AX and its unlisted subsidiaries as mechanical, electrical, and plumbing (MEP) and EPC contractors, respectively. The company secured over 400 billion won in orders for the 7 trillion won Ulsan AI data center project last year, and since the 5GW AI data center—which will be prioritized in this project—is approximately 50 times the size of the Ulsan project, a long-term expansion of orders is expected.
SamsungSecurities raised its target net asset value (NAV) from 82 trillion won to 107 trillion won to reflect the rise in the value of its equity holdings. A target NAV discount rate of 52% was applied. Analyst Park commented, “The scale and sustainability of the company’s profit-generating capacity will be further strengthened through these mega-projects,” adding, “Based on this, as efficient capital allocation—including shareholder returns—becomes more tangible, the NAV discount rate is likely to narrow.”